If you’ve been following the news lately, you’ll know that GameStop shares have been on the rise—like, seriously rising. A year ago, its shares were priced at around $4 per share, but over the last month, it has skyrocketed to the hundreds, with January 28th seeing its peak at around $470 per share.
In the midst of it all, we have a story gaining traction on the internet about how a 10-year-old happened to own some of these shares and has managed to earn over 5,000% more than the original price.
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GameStop stock prices skyrocketed recently, and this smart 10 Y.O. investor just cashed in his 10 shares
Image credits: Nina Carr
So, GameStop shares have been on the rise lately. On a steep rise. Just a month ago, it all looked quite ordinary—shares were priced at around 17 bucks per share and GameStop was just another company in the stock market.
However, weeks later, a subreddit known as r/WallStreetBets—a 2.9M member community of retail investors, individuals who trade stock for their own gain—have decided to do some coordinated trolling and make some real money along the way.
We won’t get into the details here, but you can learn more in this comprehensive explanation on the r/WallStreetBets subreddit.
Jaydyn Carr got 10 GameStop stocks as a Kwanzaa gift that doubles as an investing lesson
Image credits: Nina Carr
Long story short, stock prices went up like wildfire and one particular investor, namely Jaydyn Carr, a 10-year-old from San Antonio, Texas, has made quite a fortune from it.
The story goes that back in 2019, Jaydyn’s mother Nina Carr decided to get Jaydyn 10 GameStop shares as a Kwanzaa gift. Jaydyn was 8 years old at that moment. This was not only an incredible gift as they would often visit GameStop to buy games, but it could also be turned into a valuable lesson on stock.
Nina bought 10 shares for around $6 per share, amounting to a total of $60. Afterwards, she set up alerts and, together with her son, began monitoring the prices over time.
And what cost $6 per stock back in December, 2019 has now been cashed in at $320 per share for a total of $3,200
Image credits: KENS 5
Well, just last month, Reddit’s share investor and trader community at r/WallStreetBets decided it was time GameStop shares went up in price, and so it did. By quite a lot, actually.
Comparing the peak price of $469 per share from last Thursday and the $3.95 price tag per share from the start of February, 2020, you can see an 11,873% increase in stock price. Yes, that’s a lot.
Now, imagine having bought just 10 shares for that low of a price and seeing them now when the prices have gone up. Nina noticed this increase and immediately went to Jaydyn to ask him whether he wants to cash in on it. And he did.
This is effectively a 5,300% return for Jaydyn, a part of which he plans on reinvesting
Image credits: Nina Carr
It was all too chaotic as Nina’s phone didn’t stay silent with notifications on GameStop stock for a while. But Jaydyn had a hunch that this wouldn’t last long and cashed in on the craze.
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And as you might have guessed, it was quite a surprise for them, as explained Nina. She thought to herself “Is this really happening right now? I couldn’t believe it was true.”
So, something that cost Nina $6.19 per share back in December of 2019 was now sold for approx. $320 per share, amounting to a total of over $3,200 for the whole batch. That’s around a 5,300% return.
While two-thirds of the returns will be put into savings, Jaydyn plans to continue investing the remaining money, most likely into Roblox
Image credits: Nina Carr
The two decided to put away $2,200 into Jaydyn’s savings account, and to use the remaining $1,000 to invest in more stock as it seems to have become a bit of a passion for him because of this.
This time around, though, Jaydyn plans to go for Roblox stock, which is an online game platform and game creation system that allows users to program and play games.
What are your thoughts on this? Have you had a chance to earn from the rise of GameStop stock? Let us know in the comment section below!
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Source: boredpanda.com